How much is the net income for the year using the CVP approach? ROMALY Company bottles and distributes Frapes, a flavored summer beverage.The beverage is sold for $1.50 per 8-ounce bottle to retailers. Managementestimates the following revenues and costs at 100% of capacity.$3,150,000 Selling expenses-variable $110,000Net salesDirect materials600,000Selling expenses-fixed90,000Direct labor500,000Administrative expenses-100,000variableManufacturing overhead-Administrative expenses-580,00080,000variablefixedManufacturing overhead-310,000fixedHow much is the net income for the year using the CVP approach?

Step 1: Define Cost Volume ProfitThe cost volume profit analysis is concerned with calculating the…

Answered: ROMALY Company bottles and distributes…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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Wildhorse Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable: Manufacturing overhead-fixed. $1,750,000 450,000 400,000 420,000 120,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $108,000 54,000 22,000 71,000
Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $2,000,000 Selling expenses—variable $109,000 Direct materials 550,000 Selling expenses—fixed 58,000 Direct labor 400,000 Administrative expenses—variable 21,000 Manufacturing overhead—variable 420,000 Administrative expenses—fixed 52,000 Manufacturing overhead—fixed 190,000 Prepare a CVP income statement for 2020 based on management’s estimates. Calculate variable cost per bottle.
Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $ 2,000,000 Selling expenses-variable $ 109.000 Direct materials 550,000 Selling expenses-fixed 58.000 Direct labor 400,000 Administrative expenses-variable 21.000 Manufacturing overhead-variable 420.000 Administrative expenses-fixed 52,000 Manufacturing overhead-fixed 190,000 Prepare a CVP income statement for 2020 based on management's estimates. CARLA VISTA cOMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 Sales 2000000 Variable Expenses Selling Expenses 52000 Administrative Expenses v 300000 Net Income/(Loss) $ 200000 eTextbook and Media Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle 0.375
Most work is done need help with Per Unit and Percent of Sales Section.
Ivanhoe Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $1,950,000 Selling expenses—variable $171,000 Direct materials 470,000 Selling expenses—fixed 59,000 Direct labor 340,000 Administrative expenses—variable 24,000 Manufacturing overhead—variable 360,000 Administrative expenses—fixed 120,500 Manufacturing overhead—fixed 230,000 Prepare a CVP income statement for 2020 based on management’s estimates. Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.) Contribution margin ratio % Margin of safety ratio % Determine the sales dollars required to…
Determine the sales dollars required to earn net income of $230,000. Required sales 481000 Ű Ĉ Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,650,000 Selling expenses-variable $73,000 Direct materials 520,000 Selling expenses-fixed 52,000 Direct labor 340,000 Administrative expenses-variable 27,000 360,000 Administrative expenses-fixed 59,000 Manufacturing overhead-variable Manufacturing overhead-fixed 120,000 3 Ć Compute the break-even point in (1) sales units and (2) sales dollars. (Round answers to O decimal places, e.g. 1,225.) (1) Break-even point 2310000 units (2) Break-even point $ 1155000 S Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio 20 % Margin of safety ratio 30 % 3 Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places,…
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Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $1,980,000 Selling expenses—variable $79,000 Direct materials 500,000 Selling expenses—fixed 56,000 Direct labor 380,000 Administrative expenses—variable 27,000 Manufacturing overhead—variable 400,000 Administrative expenses—fixed 179,500 Manufacturing overhead—fixed 210,000 (A) Compute the contribution margin ratio and the margin of safety ratio. (Round variable cost per bottle to 3 decimal places, e.g. 0.25 and final answers to 0 decimal places, e.g. 25%.) Contribution margin ratio enter the contribution margin ratio in percentages rounded to 0 decimal places % Margin of safety ratio enter the Margin of safety ratio in percentages rounded to 0 decimal places % (B)…
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $1,980,000 Selling expenses—variable $79,000 Direct materials 500,000 Selling expenses—fixed 56,000 Direct labor 380,000 Administrative expenses—variable 27,000 Manufacturing overhead—variable 400,000 Administrative expenses—fixed 179,500 Manufacturing overhead—fixed 210,000 (A) Prepare a CVP income statement for 2020 based on management’s estimates. SHERIDAN COMPANYCVP Income Statement (Estimated)For the Year Ending December 31, 2020 select an income statement item Administrative ExpensesContribution MarginCost of Goods SoldFixed ExpensesNet Income/(Loss)SalesSelling ExpensesTotal Fixed…
Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 550,000 400,000 420,000 190.000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $109,000 58,000 21,000 52.000
Blossom Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2022, management estimates the following revenues and costs. Sales $1,950,000 Selling expenses-variable $67,000 Direct materials 550,000 Selling expenses-fixed 61,000 Direct labor 350,000 Administrative expenses-variable 28,000 Manufacturing overhead-variable 370,000 Administrative expenses-fixed 59,250 Manufacturing overhead-fixed 260,000
Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers For the year 2022, management estimates the following revenues and costs. Sales $1.800,000 Selling expenses-variable $105,000 Direct materials 510,000 Selling expenses-fixed 62,000 Direct labor 390,000 Administrative expenses-variable 25,000 Manufacturing overhead-variable· 410,000 Administrative expenses-fixed 96,000 Manufacturing overhead-fixed 130,000 Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio Margin of safety ratio

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